The comparison between Fidelity’s FXAIX and FSKAX often arises in online investment discussions, particularly on platforms like Reddit. FXAIX represents Fidelity’s S&P 500 index fund, mirroring the performance of the 500 largest publicly traded companies in the United States. FSKAX, on the other hand, is Fidelity’s Total Market Index Fund, striving to replicate the performance of the entire U.S. stock market, including small and mid-cap companies.
The significance of this comparison stems from investors seeking optimal diversification and risk management within their investment portfolios. Historically, investors have debated the merits of broad market exposure versus focusing on large-cap companies. Choosing between the two funds involves considering factors such as investment goals, risk tolerance, and beliefs about market efficiency and future growth prospects.
